Hi, I opened a Questrade account a couple of years ago. It hasn't been performing the greatest, but now... well.. self-explanatory. I had activated Margin and am having a hard time understanding what is MY money and what is QUESTRADE's. Can someone help? Also a bit of a reddit newb. I am trading in both USD and CAD. There is also a section in the Investment Summary called "Allocations"... and a tab called BORROWED. Is that what I am borrowing from Questrade right now? And is the TOTAL EQUITY essentially, despite all borrowing, the amount that I would have if I closed ALL positions? What happens if the stocks continue to go in a downward direction. Aside from interest that I would pay, at the worst case, do I owe what is indicated in the negative CASH section? i.e. If TOTAL CASH was -$1,000 and Total MARKET VALUE was $5,000, if the markets continued to tumble to a point where everything went to ZERO value, and then I closed positions... would the MOST I owe be $6,000 plus interest? Or is there more that I am not seeing?
Can I get Robinhood gold and invest all $1,000 into crypto on margin my robinhood portfolio sits over 10k so it is above the limit. Would I be able to put all the money in crypto or would they not let me?
I just got the update for margin trading. Now is it just me or does the way they have margin trading set up make no sense ? I'll admit I'm a rookie at best when it comes to margin trading. Is the whole idea of margin trading not to borrow a stock/coin at a set price then if it goes up you make money and if it goes down below your equity it liquidates and you lose everything. But the system they seem to have is I borrow 1 BTC for 1 BTC. Now price goes up or down doesn't matter I still owe 1 BTC + interest. Sorry for the stupid question I'm having a hard time understanding this.
Hey, I feel really dumb for not getting this because its probably something really simple. I've been trading since summer, never got really into it though. I've looked at margin trading on kraken, however I don't fully understand how it works. https://www.kraken.com/help/fees https://support.kraken.com/hc/en-us/articles/206161568-What-are-the-fees-for-margin-trading- This is the information regarding fees on their site. What I'm wondering is, say I have $1000 in that account. If I use 5:1 leverage and buy $5000 worth of bitcoin, do I get the .26% fee on the $1000 or on the $5000? I'm assuming it would be on the $5000, no? I asked their support and they told me it was only on the $1000. I've just been trading with $1000 out of my account, if they only fee the original amount -- if I wanted to trade $1000 sized positions, I would just do $200 5:1 for a fraction of the fees? I'm just confused and tried to understand on my own but I just give up at this point lol
Hey, guys. A couple of quick question re: margin trading: 1) What are the best two exchanges for margin trading? Note: I am a US citizen, but can open a corporate account if needed. 2) Say I sell short 1 ETH on margin on Bitfinex for USDT proceeds. Can I then close the position by transferring 1 ETH from another wallet and keep the USDT proceeds? Thanks in advance!
Let's say I hold 100 ETH and i have leverage trading options of 2 and 5. I want a margin position long 10 ETH. I could use either of the two leverage options, but why would I ever choose 2:1 over 5:1? I realise that at 5:1 for every 1 ETH I want to go long I need 0.2 ETH of equity available. I could hold positions of up to 500 ETH. Given that I only want to hold a 10 ETH position should I be using 2:1 leverage? I don't understand why using a lower margin is ever beneficial to the trader? Thanks EDIT Lets compare two examples: I have 100 XYZ, and a position of 100 XYZ at 2:1 leverage that I bought into when 1 XYZ costs $1. If the price of XYZ drops by 30% then I owe $30 for the position and I hold $70 of XYZ. I have to hold a balance of at least half the original margin trades' value in my account due to my leverage being 2:1 (so i have to hold $50) otherwise I'll get margin called / liquidated, which would then happen as the value of everything I hold is now only $40. I have 100 XYZ, and a position of 100 XYZ at 5:1 leverage that I bought into when 1 XYZ costs $1. If the price of XYZ drops by 30% then I owe $30 for the position and I hold $70 of XYZ. I have to hold a balance of at least one fifth of the original margin trades' value in my account due to my leverage being 5:1 (so i have to hold $20) otherwise I'll get margin called / liquidated, which doesn't happen as the value of everything I hold is now $40. So I live to fight another day with all my positions in tact whilst hoping the price comes back up. In both examples, if I exit out of the positions at a loss I'm losing the same amount, its just that with 5:1 leverage I'm not forced out of the position until i've endured greater losses So if my example are correct its better to use a higher leverage? What am I missing here? Thanks again
Ok let's say I take a long position on ETH in the ETH/BTC market. My ETH/BTC position can go negative, but I can still make a profit in USD right? So let's say ETH is at $500 USD and BTC is $17,000 USD. I take a long position in the ETH/BTC market. ETH jumps to $505 but BTC jumps to $20,000 so my position is negative. If I close my position and then sell my ETH back for USD, I'd still come away with a USD profit, right? For the sake of this scenario, please assume there are no fees involved.
Hi, So I put a 2BTC margin long at 10x yesterday entering at 1780. Today it says the ROE is 15% which equates to roughly 0.03BTC according to Bitmex. However, 15% of 2 is 0.3, so where is it getting this 15% from? Thanks for any clarification.
First of all thank you for any relevant comments to my questions related to Bitfinex Margin Trading. I have been trading BTC at Bitstamp for some time and I am considering moving part of my funds to Bitfinex to be able to short BTC. I have read thoroughly their website and FAQ plus google some unaswered questions but I am still in doubts related to following topics: Sorry for asking out here but I posted my questions to Bitfinex support and there is no feedback for 5 days yet.... :( Let us assume I will put 1000 USD on trading account and set Leverage 2:1. My tradable balance would be 2000 USD if I am right. Let us assume 1 BTC price = 100 USD My questions: 1.What does the Margin Requirement of 10% and Required Margin at Bitfinex means ? What is the difference ? 2.If I go long with 15 BTC for 100 USD = 1500 USD (still within Leverage) and price of BTC goes up to 150 USD. Will my profit be 50 USD*15 BTC - Bitfinex fees - Used swap fees ? 3.On the other hand if price goes down to 50 USD for 1 BTC do I lose 50 USD*15 BTC from my actual trading wallet is that right ? When I get margin call and my position will be force closed in this example ? 4.Is it possible on bitfinex to purchase swap when interest rate are low in advance even when I do not open trading positions and will I pay fees for every hour when I do so or only when the swap is used to cover opened position ? 5.Alternatively if i use free funds on deposit wallet to offer swap and it will be accepted do i only get payment for time it is used in opened position for trading ? What they mean by ? "Unused swaps are swaps you provided that were not used in a margin position. They give you a minimum of 1 hour of return." So if anyone accepts my swap for 2 days but do not use it at all for open position will I only get 1 hour interest but I will be forced to keep it provided for 2 days or the payment of interets will be for 2 days regardless of using in active open position ? Thank you so much for any relevant input and clarification. i really hope this will help anyone considering trading at Bitfinex as their webpage and forum is really not informative at all Have a nice weekend guys IcemanSVK
I have a leveraged trade open in poloniex that is doing very well, will Poloniex automatically fill my loan at the current loan rate after the initial two days? Also is there any other downside besides the lending fee to have a trade open for a long time (weeks or a month) as long as the value is increasing higher than the lending fees.
I have a margin account with over 100k in buying power (day trading founds available) I was so stupid, I might messed up my account, I used around 90000 for day trading several times in a day for a whole month, always closing my position at the end of the day. But then I realize, Don’t I have to pay margin interest? I was so stupid if I have to pay interest for those day trades I would be broke since I usually jump in and out of stocks more than 10 times a day using 100k of leverage. Some please help me with this doubt
So I heard cash accounts can do unlimited Day Trades as long as it’s settled cash. I have a margin account, but can I do day trades safetly while still making sure to use settled cash? I know it has the DTBP and ONBP amounts. But I’m just wondering if I can go passed the 0 day trades left counter if I still have positive Day Trade Buying Power. Right now I’m [0,1,1,2,3] with a caution risk level. I do not have 25k in equity either. So would I have to turn it into a Cash account to make sure I’m safe against the GFP?
Question about margin and number of trades per week, and profit
Here's the hypothetical, let's say I want to try and trade five days a week (assuming I can find good trades each day) and my max loss/profit I will target through limit and stops is $500 per day. Let's assume I have $50k cash in a brokerage account. Let's assume I'm targeting $50 stocks * 1,000 shares (maybe two trades a day @ 500 shares each, or whatever like that). Since it takes 2 days to settle, I think that means in this scenario I could only trade M/W/F. I have another $50k I could transfer in but maybe I don't want to do that for some reason. If I enabled margin on this account would it allow me to trade on T+1 days while I wait for the last day's sales to settle? What's a typical rate for that / how much profit does it eat into?
I'm starting to study margin trading and I believe I'm getting ahold of the basics. I had a question about a simple scenario to confirm my understanding. Scenario: If I buy stock of Company A on margin for 1,000. Then, sell my stock for Company B that I had owned previously that I bought with cash, does this automatically repay the margin loan I owe to my broker. Assuming there was 0 interest accrued from the loan. Also, how long does interest take to start adding up? I figure it varies depending on several things like leverage held by investor, amount of money loaned, and of course time before paying back. But is there am industry standard to when interest starts? Like "Trade + 2 days" Thanks guys!
Question about calculating margin trading interest.
Just wondering the way to figure out how much interest you pay on a borrow? Is it the amount of coins x the percentage rate and then divided by the number of days? So if you borrow 1000usdt at 0.192 % for 28 days would that mean you would pay $6.85 for the total amount of days or is that each day?
Attaching my margin account to joint trading platform - question/advice
I'm working with some other traders where we're going to be pooling our money/margin together. Each of our accounts stays separate, our money stays in our own MT4 wallets/accounts, but it's linked together on the back end. We then have to submit a message to our broker's support help desk with this wording. It sounds a bit odd to me. What do you all think? Using **** to redact private info. I'm planning on putting $1000 toward this venture. -------------------------- TO THE ACCOUNTS DEPARTMENT OF **********: MY NAME IS ********** I AND I HAVE A MARGIN ACCOUNT ON YOUR PLATFORM THE NUMBER OF WHICH ARE ******* AND I WOULD LIKE TO HAVE THEM ATTACHED TO THE ********** FOR A FEE OF 80% OF THE DELTA. I FURTHER UNDERSTAND THAT AFTER THIS DELTA FEE IS SUBTRACTED, I WILL HAVE 50% OF THE BALANCE PAID TO MY INTRODUCING PARTY. -------------------
We are issuing this investor guidance to provide some basic information about day-trading margin requirements and to respond to a number of frequently asked questions that we have received. We also encourage you to read our Notice to Members and Federal Register notice about the rules. Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges subject to TD Ameritrade review and approval. Carefully review the Margin Handbook and Margin Disclosure Document for more details. Trading on margin Buying securities on margin allows you to acquire more shares than you could on a cash-only basis. If the stock price goes up, your earnings are potentially amplified because you hold more shares. However, since margin trading involves a loan from the brokerage firm, the risks are great, not to mention the costs. We wrote extensively about this topic in our article,Margin Investing Carries High Risks. For a free case evaluation regarding your margin trading abuse claim, contact our office by calling or filling out our online contact form. I have been trying out spreadbet on a demo account using the Footsie 100 index. After placing a deal (say £20 per point buy) and then achieving a successful target my account is credited with the bet result, i.e. 40 point gain x £20 = £800. What hapens to the Margin amount? I guess I am doing som...
1.5 The Necklace//STD : 1X Margin Questions PART- 1 And PART- 2 For Urdu medium. By:- Khan sir.
HERE IS HOW QUICK AND EASY IT IS TO OPEN A MARGIN ACCOUNT WITH QUESTRADE. IT TOOK ME LESS THAN 15 MINUTES AND ONCE I FUNDED THE ACCOUNT, IT WILL BE ACTIVE IN ONE BUSINESS DAY. I WILL ALSO UPLOAD A ... Trading 101: What is a Margin Account? Come join me for a live session where I talk more about trading, the markets and all the money that can be made. Claim... 🎰 What trading on margin means and how to use it The Dough 💲how - Duration: 30:00. Jazz Wealth Managers 9,602 views. 30:00. Stock Margin is when you borrow funds from your broker to buy more stock. Margin can amplify your returns, but it can also hurt them if an investment turns a... What is buying on margin? Learn more at: https://www.wallstreetsurvivor.com Opening a margin account allows you to trade on borrowed money. You have to open ...